A range of entitlements â including child benefit, child tax credit, state pension credit, jobseekerâs allowance and employment and support allowance â are given only to those who pass a âright to resideâ test in Britain.

The commission says the test is too tough, and wants Britain to apply more generous EU-wide rules.

Mr Duncan Smith will use his speech at the Conservative Party conference on Monday to set out his views on the move, which he says could leave taxpayers handing out £2billion to EU nationals.

He will say: âLet me reassure you, that at a time when the British people are tightening their belts, and the European Commission orders us to open our doors to âbenefit touristsâ and pay them benefits when they arrive here, I have a simple message for them: No, no, no.â

His comments come as it was revealed that a historic vote will be held in the Commons before Christmas on giving the British public a referendum on whether to leave the EU.

Amid reports that Greece has again missed its monthly deficit reduction target, David Cameron described a âreal problemâ with the eurozone.

âIt is a threat, not just to itself, but to the British economy and the wider world economy and we have to deal with this,â the prime minister told BBCâs Andrew Marr Show.